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I am assuming that you are leaving info for their created SE account.
– DMooreOct 29 '14 at 20:46

I'd swap the soap for wax, such as beeswax - and you know where to find beeswax - in the plumbing section ;-) While soap will also get screws in, wax won't promote corrosion over time, which soap can. small framing square - speed square (the plastic ones are quite affordable and hold up better than I'd have expected)
– EcnerwalOct 29 '14 at 15:28

@AlexandreVaillancourt While the saw is a good idea, there is a higher level of proof-of-skill-level necessary than with the other tools, especially if the lower age is 8.
– bibOct 29 '14 at 15:55

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@alt These are cub scouts. A little young for knife work.
– Chris CudmoreOct 29 '14 at 17:17

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Be very picky if shopping horrible fright, et al - if your first set of inexpensive tools is also "cheap" in the "not actually inexpensive, since they don't work as they should" sense, it can have a lasting impression other than what you seek here. It need not be Lee Valley (et al) hoighty-toighty, but it needs to be functional, or you should skip it. "Bad tools for children" are a terrible idea, and "an empty box to fill up yourself" is actually preferable to that.
– EcnerwalOct 29 '14 at 18:11

At around that age I got a premade toolbox at everybody's favorite radio parts / cell phone store (for $8 on clearance, when I came home with it my mom gave me $16 and had me buy one for my brother), here's what was (going from memory) was in it:

Hammer

Combo wire cutter/wire stripper/crimper

Level

Ratcheting screwdriver with a fairly wide assortment of bits (philips/flathead/torx/hex)

Miniature screwdriver set (two different sizes each of philips and flathead)

I'm not to sure I want 8 year olds playing with electrical work.
– Chris CudmoreOct 30 '14 at 12:33

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@ChrisCudmore Why not? I was 10 years old when I started. Yeah, them working on 120V is probably a no-no, but there's nothing wrong with hooking whoever is interested up with a couple of AA batteries, some wire, and some motors. Seriously, if any of them show interest in robotics or stuff like that, hit me up and I can recommend some kits or stuff which may be worthwhile.
– Ross AikenOct 30 '14 at 16:42

Echoing @DMoore, Safety glasses! And don't forget to wear yours! And get some spares/loners so that no one isn't wearing them. Nails hardly ever hit the hammerer but often "squirt" sideways and get the kid sharing the work bench.

If this is just for carpentry

Pencil. (Carpenter's pencils are hard to sharpen. I use "kids" pencils. And they have erasers!)

Ruler. Consider making it. Just a stick with marks on it.

Square. Make two; right-hand and left-hand. Just two sticks and some glue. Good intro to technique, too.

Short saw. (A Japanese pull saw has both crosscut and rip blades, makes thinner kerfs, and cuts straighter.)

Actually useful tools are the ones that are (expensive) well made. It's not very fun when the handle breaks; cheap tools can be dangerous. If they are responsible, they may own some of these tools for the rest of their lives. I'd suggest a minimalist approach to mitigate budget concerns.

They need a hammer that the head won't fly-off of, needle nose and slip-joint pliers, a quality tape measure and screwdrivers; not a bit kit. Though it would be a great addition that could add some random hex, torx, sockets, ect. An adjustable wrench would be nice but not crucial if you have pliers.

A bit kit may actually be the most useful thing to them at this time, for taking toys apart, changing batteries and whatnot; kid stuff. As a child I received a cheap tool box, mostly geared towards woodworking; it was (and would still be) useless to me. Focus on items that will stand the test of time and be useful for the duration.